Monday, December 12, 2011

Expensive domestic flights.

The adjustment of recent and upcoming aviation industry will make airfares more expensive.
According to the Civil Aviation Administration of Vietnam, about 15 days to evaluate the plans would increase the ceiling price of domestic tickets, prior to submission to the concerned ministries. In April, the airlines have to adjust the ceiling, so the adjustment will make tickets more expensive than Vietnam domestic flights.Ticket prices increaseIf a proposal to increase 1.5 times (50%) domestic ticket price ceiling frame is adopted, the highest fare class stage HCM City - Hanoi plus 10% VAT, costs will almost 4 million / respectively. Even if there are many different rates (low season, high season, book early if ...), 1.5 times adjusted ceiling, domestic fares will rise on average by 15% compared to today. Thus, the case is approved, the beginning of this year, the ceiling on ticket prices have risen to 70%.

Vietnam Domestic Flights

The rationale for the Aviation Department plans to continue to increase the ceiling price in the month 4.2011, ceiling brackets Vietnam domestic Flights tickets have been added more than 23%, Pham Quy Tieu, Vice Minister, said that by suggested by the manufacturer, comes from the fact that airlines are difficult due to oil prices, growth rates, inflation. Meanwhile, the Youth Survey, the fare for many U.S. domestic routes are equally or even more expensive than some countries in the region. Kuala Lumpur to Penang nor (50 minutes), Malaysia Airlines fare its lowest roundtrip 109 MYR / time is not tax, equivalent to about 750,000 VND; Kuala Lumpur to Kuantan (40 minutes), the lowest round-trip cost 109 MYR price flexibility class 379 MYR (approximately 2.6 million / turn, but discounts of up to 30%).The same flight with Vietnam Airlines from Hanoi - Hue / Danang, round-trip fare class savings is 900,000 VND / less tax, flexible class 1,480,000 VND / way less tax. Hanoi - Dong Hoi fare from 900,000 to 1.1 million VND / tax return yet. Mr. Ta Huu Thanh, deputy general director of Jetstar Pacific, said that "domestic fares low compared with other countries in the region but higher than average per capita income is much lower U.S. water (Malaysia income Army about $ 7,000 / year, approximately U.S. $ 1,100 / year) ". 

The travel concernsSaid, "is to increase ticket prices for holes," says Ta Huu Thanh, bull died in April is an opportunity to reduce losses to go to break, once this adjustment is necessary to be active in economic marketing, less difficult, because firms are actually holes. Still, Mr. Thanh acknowledged airlines set fares, but must be accepted by the market. For example, the way Vietnam - Hanoi $ 2.5 million including taxes and fees, if the festival time, customers will accept the rise from 2.7 to 3 million / PM, but increased to more than 3-3, 5 million under the ceiling, make what has sold, many people will turn to other means. The leaders of Vietnam Airlines also said: "Fare increases will depend on how much regulation of the market, if the ticket prices too high, the loss of customers, vendors do not want."But the promise fare increases within market approval is not enough to travel agents and consumers are less concerned. Fares make up from one third to half of the tour. As representatives of many travel agents, the increase in Vietnam domestic Flights fares tour fares that domestic tour prices will be higher than the same time to other countries in the region. Mrs. Doan Thi Thanh Tra, Head of Marketing Saigontourist, said that if the proposal to increase the ceiling of 1.5 times its approval, the price of tour Vietnam - Hanoi will be more expensive package tours to Thailand (about 350 USD ), even more expensive tours to Singapore (currently, the price of tours to Singapore four days approximately 12.9 million, for tour Vietnam - Hanoi about 10 to 12 million in normal conditions).According to Ms. Ho Thi Kim Dung, deputy director of Vietnam Travel Channel, the high ticket prices will have its own separate tour price, own price for airline tickets are choosing, or to reduce tour prices down by destinations or a service. Fare increase would not cause domestic tour with tourist attractions in the country, by the same amount, there are many opportunities to tour selected areas with higher service quality is concerned by many travel agents .Representatives of a large travel agencies south, said: "Many foreign delegations U.S. tour set to end in 2012, tour brackets are calculated at current ticket prices. If the ticket price increases, the tour price will certainly be adjusted to increase, it is difficult to customer acceptance. "

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